Paperwork And Disclosures

As a mortgage loan officer it’s important to be prepared when meeting with customers. If you’ve determined that an FHA-insured loan best fits and meets a customer’s needs, the next step is to collect all of the following items up-front at the inception of the loan application:

  • evidence of a Social Security number (This could be a Social Security card or other document the lender may accept as proof of this number. Ask what documents may be acceptable in place of a missing Social Security card if necessary, or what could act as a stand-in until a replacement Social Security card arrives.)
  • recent W-2s (last two years)
  • copies of signed two years’ federal income tax returns
  • most recent paystubs (two) with 30 days of earnings (Most recent means paystubs that are the most up-to-date and available at the time of application. In cases where a borrower works seasonal or nontraditional work, is self-employed, or receives commissions and/or bonus income, additional documentation or alternative documentation would be needed. Check with the lender. Being proactive and collecting these things up front rather than having the file conditioned out, saves time, making things more efficient for all parties, and also builds credibility with the customer.)

Required Paperwork And Disclosures

An FHA loan also requires additional paperwork and disclosures to be provided with the loan application such as:

  • Important Notice to Homebuyer (HUD 92899-B)
  • FHA Amendatory Clause and Certification
  • For Your Protection—Get a Home Inspection
  • HUD Addendum
  • Homebuyer’s Choice Disclosure
  • Energy Efficient Mortgage (EEM) program Fact Sheet

Depending on the lender, you might also need additional documents that the lender requires in its own application package. It is important to check and verify exactly what documents are needed, as a complete package means fast approvals.

Files And Documentation

Many lenders will want the following items to be kept in the file before an application is submitted for underwriting and/or initial submission as part of your documentation as a loan officer:

  • submission checklist
  • new case number (if applicable)
  • HUD-92900- LT, Loan Transmittal (completed in its entirety)
  • initial and typed Uniform Residential Loan Application (URLA) (signed, dated, and completed in its entirety)
  • HUD-92900-A (pages 1 and 2 completed and signed)
  • clear Government Services Administration (GSA) and Limited Denials of Participation (LDP) searches
  • FHA disclosure forms (noted earlier)
  • copy of Social Security card (for streamline no income documentation loans)
  • credit report showing only credit scores and satisfactory mortgage rating
  • copy of note and deed of trust (to verify old case number and rate reduction or ARM)
  • current payoff for refinances
  • net tangible benefit worksheet
  • all letters of explanations regarding collections, known gaps of employment, large deposits that are on bank statements, etc. (i.e., anything out of the ordinary)

Related> How to understand your mortgage disclosures

Related> Know before you owe

Related> Mortgage disclosure documents

Related> Documents needed for a home loan

 

The information contained on Gustan Cho Associates website is for informational purposes only and is not an advertisement for products offered by The Gustan Cho Team @ Gustan Cho Associates or its affiliates. The views and opinions expressed herein are those of the author and/or guest writers of Gustan Cho Associates Mortgage & Real Estate Information Resource Center website and do not reflect the policy of Gustan Cho Associates Lenders Network, its officers, subsidiaries, parent, or affiliates.

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